TfL extends fare collection contract with Cubic

Transport for London (TfL) has awarded Cubic Corp.’s UK subsidiary Cubic Transportation Systems Ltd. a contract worth more than $700 million (U.S.) for the Electra ticketing and fare collection system. The contract is a continuation of the partnership between TfL and Cubic, which has seen the introduction and network-wide rollout of the Oyster contactless smartcard.

The contract, Electra by TfL, is for provision and maintenance of revenue collection systems including ticket gates, Oyster card readers, and back-office systems. The terms of the contract, which is effective August 2015 (when Cubic’s original Oyster contract expires), are for seven years and include an option for an additional three years, giving it a potential value of more than $1 billion. Cubic won a competitive bid, besting LG CNS Co. Ltd. and Scheidt & Bachmann GmbH.

“Central to this contract is the use of technology to reduce costs and improve service to help cope with the increased demand from London’s burgeoning population,” said Cubic Transportation Systems Senior Vice President and Managing Director, EMEA Roger Crow. “Cubic has been associated with ticketing and revenue management in London for more than three decades, earning unrivaled understanding of the intricacies of one of the world’s busiest and most complex urban travel networks. The organization has supported TfL and its predecessor, London Transport, through many major events, including the London 2012 Olympic and Paralympic Games, and the Queen’s Diamond Jubilee. During this time, the performance of the public transport network garnered universal praise. We are delighted that our bid to continue our work in London has been successful. Each member of our team, both here in the UK and around the world, has contributed to our work with TfL and I am extraordinarily proud of what we have achieved.”